Download Unit 5 - FarrarMarketing

Unit 5
Markets
Objectives
List the four characteristics of a market.
Explain the difference between the
consumer market and the business
market.
List the four categories of customers in
the business market.
Objectives
Distinguish between a consumer and a
customer.
Describe the difference between a
mass market and a market segment.
Explain why marketers segment a mass
market.
Marketing Terms
market
consumer market
business market
consumer
B2C
B2B
producer
reseller
institution
government
mass market
market segment
marketing
strategy
A Group of Buyers
A market is a
group of people
who want a
product and
 are able to buy it

What qualities should a market have?
A Group of Buyers
Characteristics of a market
need or want the product
 able to buy the product
 willing to buy the product
 have the authority to buy the product

Give an example of a group who might
want a product, but not be able or
have the authority to buy it.
Consumer Market vs.
Business Market
Two types of markets
consumer market
– people who buy products for their own
use
 business market
– people who buy products for use in a
business

The Consumer Market
Consumer
member of the
consumer market
 buys products for his
or her own use
 buys groceries,
clothes, cars, gifts,
and other consumer
goods and services

The Consumer Market
The consumer market is also called B2C
Business selling
to
Consumers
The Business Market
The business market consists of

businesses who buy products
– from other businesses
A customer in the business market

is another business
The business market consists of
businesses

The consumer market consists of
individual consumers
The Business Market
The business market is also called B2B
Business selling
to
Businesses
The Business Market
The three uses for
business products
making new
products
 resale
 running the
business

Give examples of each business use.
Types of Business
Customers
Four types of customers in the
business market
producer
 reseller
 institution
 government

Types of Business
Customers
Producer
makes goods
and services
 farmers,
manufacturers,
mining, and
construction

Name some businesses that are producers.
Types of Business
Customers
Reseller
buys finished
products
– to sell at a
profit
 also called
retailer

Name some businesses that are resellers.
Types of Business
Customers
Institution
nonprofit
corporation
 school, hospital,
or charitable
organization

Name some institutions.
Types of Business
Customers
Government
organizations and
institutions that run a
geographic area
– such as a country,
state, or city
 includes federal,
state, city, and
county governments

WORKOUT
Complete Consumer Market or Business
Market assignment.
Customer vs. Consumer
The term consumer has more than one
meaning
1. member of the consumer market
2. person who actually uses (consumes) the
product
The customer (the person who buys the
product) is distinguished

from the consumer (the person who uses
the product)
Customer vs. Consumer
In the consumer
market

a parent buys food
for his or her child
Who is the customer? Who is the consumer?
Customer vs. Consumer
In the business
market

a purchaser
buys computers
for the
accounting
department
Who is the customer? Who is the consumer?
Market Segments
Think of everyone who drinks cola
beverages
All the cola customers are a mass
market
All the customers for a type of product
are called a mass market
Mass Market for Colas
Cola
A mass market consists of all the
customers for a type of product
Market Segments
Does everyone in the
cola market want the
same kind of cola?
List subgroups by
types of cola that
people want.
Market Segments
A market segment is a subgroup of a
larger market
everyone in a market segment has similar
needs and wants for a particular product
 the needs of one market segment are
different from the needs of another market
segment

Market segmentation is the process of
dividing a large mass market into smaller
market segments.
Segmented Market for Colas
Caffeine-free
Regular
Caffeine-free
Diet
Diet
Regular
Low
Carb
Choosing Your Target
Market
It is very difficult to meet the needs of
all the customers in a mass market
Market segmentation can help a
business find a target market

it is usually easier to select a target
market and
– meet the needs of that smaller market
Choose a market and give at least two
market segments for that market.
Segmentation and the
Marketing Concept
The marketing concept says that the best
way to make a profit is

by satisfying customers’ needs and wants
Targeting a market segment helps
businesses follow the marketing concept
It is easier to satisfy customers

if marketers target a market segment
– in which all customers have the same
wants and needs
Marketing Strategy
A marketing strategy is the

selection of a target market and the
– development of a marketing mix to
meet the needs and wants of the
target market
Target
Market
+
Marketing Marketing
=
Mix
Strategy
WORKOUT
Complete B2B handout.
Review
What is the difference between the
consumer market and the business
market?
Describe the three types of uses for
business products.
List the four types of customers in the
business market.
What is a market segment?
Glossary
Back
B2B. Business selling to business.
B2C. Business selling to consumers.
business market. Customers who buy
products for use in a business; also
called industrial market, organizational
market, or commercial market.
Glossary
Back
consumer. Member of the consumer
market; customer who buys products for
his or her own use.
consumer market. Customers who buy
products for their own use.
government. Consists of the organizations
and institutions that run a geographic area,
such as a country, and includes federal,
state, county, and local governments.
Glossary
Back
institution. Nonprofit corporation, such
as a school, hospital, or charitable
organization.
market. Group of people who want a
product and are able to buy it.
marketing strategy. The selection of a
target market and the development of a
marketing mix to meet the needs and
wants of the target market.
Glossary
Back
market segment. Subgroup of a larger
market; this subgroup has similar wants
and needs for a particular product.
mass market. All the customers for a
type of product considered together.
Glossary
producer. Business that makes goods
and services.
reseller. Business that buys finished
products to resell at a profit.
Back
WORKOUT
Complete Unit 4 test.